annoucenment?, page-39

SBC, no its the noteholders who have the first choice. You can either:

1. Deliver a conversion notice and ask for conversion of 50% of your holding (but the company is specifically telling you that you will be getting shares and not cash).

OR

2. Simply continue to hold the bonds and receive your 8.5% interest. This interest cost is NZ$3.1M per qtr or $12.4M pa. The next interest payment date is 17 Nov 2009.

The way things are looking for the shares, people I suspect will opt for the rollover and hope for the best. These bonds are trading at 14 cents on the dollar on the NZX.

The other option of course is to rollover and wait for the asset sales process to carry on for another 6 months. If (and this is a big IF) they sold 100% of DBCT and saw off their corporate debt, then at the next Conversion Date time in Nov 2009, they may or may not have some cash instead. This looks like the punt these holders will be forced to take. It would takean almighty sale to achieve this though.

Perhaps people can start to see now the dilution issues surrounding the BBI shares. The ords will go down and stay down from here.